US-based short-form video production company NewTV has closed an initial $1bn in funding, raising the cash from a consortium including a range of corporate investors.
Media and entertainment groups 21st Century Fox, Walt Disney, Entertainment One, ITV, Lionsgate, Metro Goldwyn Mayer, NBCUniversal, Sony Pictures Entertainment, Viacom and Warner Media were all among the investors and, according to Deadline, possible content suppliers.
E-commerce firm Alibaba, mass media group Liberty Global and investment banking firms Goldman Sachs and JPMorgan Chase also participated in the round, which was led by investment group Madrone Capital Partners.
NewTV is developing an online platform that will feature drama, comedy, documentaries and reality shows cut into episodes that are 10 minutes in length, made with budgets comparable to high-profile cable channels or streaming services like HBO or Netflix.
The round was closed on July 31 according to Variety, which said NewTV expects to launch its subscription-based service by the end of 2019. It will comprise two price tiers: an advertising-free option and an advertising-light service.
Meg Whitman, chief executive of NewTV, said: “More so than ever, people want easy access to the highest quality entertainment that fits perfectly into their busy, on-the-go lifestyles.
“With NewTV, we’ll give consumers a user-friendly platform, built for mobile, that delivers the best stories, created by the world’s top talent, allowing users to make the most of every moment of their day.”
NewTV was launched by WndrCo, the media holding vehicle co-founded by film business veteran Jeffrey Kaztenberg, which retains a minority stake in the company.
WndrCo has also invested in mobile carrier service Lunar Wireless and Axios, a digital business and politics news platform that shares NewTV’s bitesize ethos.
Mark Burnett, chairman of MGM’s Worldwide Television Group, told Variety: “This is the right thing at the right time. People now watch most of their content on mobile – and this idea is amazing.”